Cancellation of Trademark Registration Under the Trade Marks Act, 1999 Can Be Sought for Non-Use to Protect Commercial Interests and Brand Rights: Delhi HC

About the Case

The Delhi High Court, presided over by Justice Amit Bansal, recently heard a petition filed by Bajaj Auto Ltd., seeking the cancellation of the trademark “Freedom Grand 125,” registered to Lohia Machinery Limited (LML). Bajaj argued that the trademark had not been in use for a prolonged period and that its cancellation would enable Bajaj to utilize the name for its own motorbikes without legal hindrance.

LML, once a prominent player in the two-wheeler market, launched the “Freedom” motorcycle in 2002. However, operations ceased in 2017, and the company is currently under liquidation. In 2021, SG Corporate Mobility acquired the rights to the “Freedom” and “LML” trademarks, including associated goodwill. Subsequently, SG Corporate Mobility filed a trademark infringement suit against Bajaj in October 2024, alleging unauthorized use of the “Freedom” mark.

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Case Progress

Justice Bansal directed Bajaj to implead LML’s liquidator and issued notices to the Registrar of Trademarks. Further proceedings are scheduled for February 2025. Bajaj contends that the “Freedom” trademark under class 12 (covering two-wheelers) is no longer actively used and should therefore be revoked, citing the provisions of the Trade Marks Act, 1999. Although the registration remains valid until 2034, Bajaj argues that continued legal protection hinders its commercial interests.

Bajaj recently introduced motorbikes under the “Freedom” and “Freedom 125 CNG” names in 2024, prompting SG Corporate Mobility to file the infringement suit. Through the cancellation petition, Bajaj seeks to nullify any legal claims SG Corporate Mobility may assert, thereby preempting further litigation.

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Background on LML and SG Corporate Mobility

LML was a dominant force in the Indian two-wheeler industry during the 1980s and 1990s through its collaboration with Italian manufacturer Piaggio, producing Vespa scooters. After the partnership ended in 1999, LML developed its own motorcycles, including the successful “Freedom” model. Despite early success, financial challenges led to operational shutdown in 2017.

SG Corporate Mobility acquired the LML brand and trademarks in 2021 with plans to revive the brand through electric vehicles (EVs). The company introduced concepts like the LML Star e-scooter in 2023, underscoring the value of legacy trademarks in a rapidly evolving market.

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Key Takeaways

The ongoing case highlights the significance of trademark protection in safeguarding brand identities and commercial interests. It also illustrates how legacy trademarks can retain substantial value, even after a company ceases operations, fostering legal disputes in competitive industries.

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Case Title

Bajaj Auto Ltd. v. LML Ltd.

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For further details, stay tuned for updates following the next court hearing in February 2025.